This system produces AAV using Spodoptera frugiperda (Sf9) insect cells and recombinant baculoviruses (rBV). Two features enable this system to produce Adeno-Associated Virus (AAV) titers of up to 1E+17 vector genomes (vg)/batch: A-B. An artificial intron, containing an insect (polh) promoter, is inserted between nucleotide 850 and 851 of the AAV replication (Rep) genes to enable the expression of both Rep78 and Rep52, while making the baculovirus more stable. C. The expression levels of Rep78 and Rep52 in Sf9 cells transfected with the Bacmid or infected with rBV carrying the artificial polh promoter-containing intron embedded in the Rep genes (lanes 1 & 2) are significantly higher than those reported from plasmid transfected HEK293 cells. D-E. The same artificial intron, containing the insect polh promoter is inserted between nucleotide 2227 and 2228 of the AAV capsid (Cap) genes to enable higher expression of VP1 (one of three AAV capsid proteins), while maintaining high expression levels of the other capsid proteins (VP2 and VP3). This results in highly infectious AAV particles that are lacking in first generation baculovirus system. F. Higher levels of VP1 are produced and packaged into AAV virions using the rBVs carrying the artificial polh promoter intron-containing Rep and Cap coding sequences (lane 2) than by using those carrying artificial intron-less Rep and start codon–mutated Cap coding sequences (lane 1).